Arteris, Inc. Q2 Revenue Surges to $53.4M

Ticker: AIP · Form: 10-Q · Filed: 2024-08-01T00:00:00.000Z

Sentiment: bullish

Topics: revenue-growth, semiconductors, financials

TL;DR

Arteris Q2 revenue up to $53.4M, strong growth!

AI Summary

Arteris, Inc. reported its Q2 2024 results, with total revenue for the six months ended June 30, 2024, reaching $53.4 million. This represents a significant increase from the $47.4 million reported for the same period in 2023. The company's revenue is primarily driven by License and Maintenance fees, and Variable Royalties and Other income.

Why It Matters

The substantial revenue growth indicates strong market demand for Arteris's semiconductor interconnect technology, potentially signaling increased adoption by chip manufacturers.

Risk Assessment

Risk Level: medium — The company's financial performance is subject to the cyclical nature of the semiconductor industry and competitive pressures.

Key Numbers

Key Players & Entities

FAQ

What was Arteris, Inc.'s total revenue for the six months ended June 30, 2024?

Arteris, Inc.'s total revenue for the six months ended June 30, 2024, was $53.4 million.

How does the revenue for the first six months of 2024 compare to the same period in 2023?

The revenue for the first six months of 2024 ($53.4 million) represents an increase compared to the $47.4 million reported for the same period in 2023.

What are the primary sources of revenue for Arteris, Inc.?

The primary sources of revenue for Arteris, Inc. are License and Maintenance fees, and Variable Royalties and Other income.

What is the fiscal year end for Arteris, Inc.?

The fiscal year end for Arteris, Inc. is December 31.

What is the business address of Arteris, Inc.?

The business address of Arteris, Inc. is 900 E. Hamilton Ave, Suite 300, Campbell, CA 95008.

Filing Stats: 4,711 words · 19 min read · ~16 pages · Grade level 16.2 · Accepted 2024-08-01 17:05:00

Key Financial Figures

Filing Documents

Financial Information

Part I. Financial Information 3 Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited) 3 Condensed Consolidated Balance Sheets as of June 3 0 , 2024 and December 31, 2023 3 Condensed Consolidated Statements of Loss for the Three and Six Months Ended June 3 0 , 2024 and 2023 4 Condensed Consolidated Statements of Comprehensive Loss for the Three and Six Months Ended June 3 0 , 2024 and 2023 5 Condensed Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended June 3 0 , 2024 and 2023 6 Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 3 0 , 2024 and 2023 8 Notes to Unaudited Condensed Consolidated Financial Statements 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 21 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 34 Item 4.

Controls and Procedures

Controls and Procedures 35

Other Information

Part II. Other Information 36 Item 1.

Legal Proceedings

Legal Proceedings 36 Item 1A.

Risk Factors

Risk Factors 36 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 73 Item 3. Defaults Upon Senior Securities 73 Item 4. Mine Safety Disclosures 73 Item 5. Other Information 73 Item 6. Exhibits 75

Signatures

Signatures 76 2 Table of Contents

- Financial Information

Part I - Financial Information

Financial Statements

Item 1. Financial Statements Arteris, Inc. Condensed Consolidated Balance Sheets (In thousands, except share and per share data) (Unaudited) As of June 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 22,128 $ 13,696 Short-term investments (Note 5) 23,629 27,477 Accounts receivable, net of allowance of $ 93 as of both June 30, 2024 and December 31, 2023 8,947 12,003 Prepaid expenses and other current assets 4,202 5,254 Total current assets 58,906 58,430 Property and equipment, net 4,665 5,745 Long-term investments (Note 5) 8,124 11,802 Equity method investment 7,016 8,500 Operating lease right-of-use assets 3,829 4,289 Intangibles, net 3,466 3,858 Goodwill 4,178 4,178 Other assets 6,187 5,999 TOTAL ASSETS $ 96,371 $ 102,801 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 340 $ 183 Accrued expenses and other current liabilities 11,713 11,831 Operating lease liabilities, current 830 781 Deferred revenue, current 36,939 31,537 Vendor financing arrangements, current 1,905 2,070 Total current liabilities 51,727 46,402 Deferred revenue, noncurrent 24,503 25,172 Operating lease liabilities, noncurrent 3,123 3,610 Vendor financing arrangements, noncurrent 889 1,292 Deferred income, noncurrent 8,226 8,810 Other liabilities 2,628 2,412 Total liabilities 91,096 87,698 Commitments and contingencies (Note 10) Stockholders' equity: Preferred stock, par value of $ 0.001 - 10,000,000 shares authorized as of both June 30, 2024 and December 31, 2023; no shares issued and outstanding as of both June 30, 2024 and December 31, 2023 — — Common stock, par value of $ 0.001 - 300,000,000 shares authorized as of both June 30, 2024 and December 31, 2023; 39,193,088 and 37,518,583 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively 39 37 Additional paid-in capital 126,192 118,193 Accumulated other comprehensive income 38 120 Accumulated deficit ( 120,994

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